HMRC Warns Crypto Holders: Tax Crackdown Intensifies with 81,000 Warning Letters

HMRC's tax crackdown on crypto investors is intensifying, with over 81,000 warning letters sent to holders in the past year.

The number of letters has almost tripled since 2024, and experts warn that investors face fines or prosecution if they fail to declare profits made from selling cryptocurrencies, even if exchanged for another asset.

Neela Chauhan, partner at UHY Hacker Young, says tax authorities expect cryptocurrency investment is rife with tax evasion: 'A lot of the traders are young, have had little previous exposure to HMRC and often work under the assumption that HMRC has limited visibility over their activities.'

HMRC suspects large amounts of unpaid capital gains from the rise in cryptocurrency values between December 2022 and October 2025, with Bitcoin's price shooting up from around £14,000 to £90,000.